Shine Star Vs DCIT (ITAT Mumbai)
Settling One Assessment Does Not Settle Another: ITAT Deletes ₹1.01 Crore Addition After AO Withheld Purchase Details
Two disputes may concern the same assessment year and alleged purchases, yet arise from different assessment orders. That distinction proved decisive in Shine Star. The Mumbai Tribunal held that the assessee’s settlement of an addition made in the original assessment under the Direct Tax Vivad Se Vishwas Scheme, 2020 did not extend to a later reassessment addition of ₹1,01,09,911. It then deleted the later addition because the Assessing Officer had not supplied the basic details of the alleged bogus purchases despite specific requests.
What had actually been settled?
Shine Star’s original assessment for AY 2014–15 was completed under section 143(3) on 27 December 2016. It included an addition of ₹68,23,155, calculated at 5% of disputed purchases of ₹13,64,63,096. The assessee appealed against that assessment and subsequently opted to settle the dispute under the Vivad Se Vishwas Scheme.
The declaration identified the original assessment order and the disputed income of ₹68,23,155. Form No. 5 was issued on 16 February 2022, and the appeal arising from the original assessment was dismissed as withdrawn following the settlement.
Separate reassessment proceedings produced a different result. A notice under section 148 was issued on 12 April 2021; further proceedings followed, including a fresh notice dated 28 July 2022. The reassessment order dated 26 May 2023 made a further addition of ₹1,01,09,911 under section 69 read with section 115BBE, based on alleged purchases from accommodation entry providers. The assessee appealed against that addition.
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